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Godfall Developer Shuts Down: Report

by Charlotte Apr 24,2025

Godfall Developer Shuts Down: Report

Summary

  • Counterplay Games, the developer behind Godfall, may have shut down.
  • A LinkedIn post from an employee at another studio suggests that Counterplay Games has 'disbanded.'
  • Godfall struggled with repetitive gameplay and a lackluster story, failing to retain a significant player base.

Counterplay Games, the studio behind the PlayStation 5 launch title Godfall, may have quietly ceased operations, as indicated by a LinkedIn post from an employee at Jackalyptic Games. The post, shared by PlayStation Lifestyle, mentioned a collaboration between Jackalyptic and Counterplay on a new project that didn't reach 2025, leading to Counterplay's disbandment. Since the release of Godfall in 2020, the studio has remained silent and made no further game announcements, with its last notable update being the Xbox release of Godfall in April 2022.

Despite being the first game announced for the PlayStation 5, Godfall failed to capture a substantial audience. Even after a major update in 2021, the game was criticized for its repetitive gameplay and underwhelming narrative, resulting in poor sales and a dwindling player base. While the reception wasn't entirely negative, the game's performance may have contributed to the studio's challenges.

If confirmed, Counterplay Games would join a growing list of studios facing closure in the gaming industry. Recent examples include Sony's shutdown of Firewalk Studios shortly after the release of Concord in September 2024 and the closure of mobile developer Neon Koi in October of the same year. Unlike those studios, Counterplay's potential end would not be due to actions by a parent company but rather the broader difficulties of sustaining a studio in today's competitive market.

The increasing costs of game development and high expectations from both players and shareholders make it challenging for studios, especially smaller indie ones, to succeed. Even anticipated titles like those from Frostpunk developer 11 Bit Studios faced layoffs in late 2024 due to profitability issues. While the exact reasons for Counterplay's reported closure remain unclear, similar industry pressures may have played a role. The studio has not issued an official statement, and fans are encouraged to await further information. For now, the outlook appears uncertain for Godfall enthusiasts and those anticipating future projects from Counterplay Games.